Hi there, I am new to the industry and am seeking some help with a purchase and sale agreement legal for Texas. I have found several pdf versions but I am afraid they are multiple pages long. The shortest being 9 pages I fear this might deter potential home sellers in the process, any and all help would be greatly appreciated. Thanks in advance.
I've been using the TREC form for more than 20 years to buy and sell my investments...it's never been a problem with a Seller. The issue is with new investors who jump into this arena without any knowledge of contracts, contract law, survey, title matters, negotiation, valuation, entry/exit strategies, etc. Do yourself a favor and get with a seasoned investor to whom you can bring potential deals for evaluation and then shadow him/her so you can learn how to do real estate investing legally and ethically. This ain't HGTV...you're dealing with real people and their lives. Don't be that guy.
I've been using the TREC form for more than 20 years to buy and sell my investments...it's never been a problem with a Seller. The issue is with new investors who jump into this arena without any knowledge of contracts, contract law, survey, title matters, negotiation, valuation, entry/exit strategies, etc. Do yourself a favor and get with a seasoned investor to whom you can bring potential deals for evaluation and then shadow him/her so you can learn how to do real estate investing legally and ethically. This ain't HGTV...you're dealing with real people and their lives. Don't be that guy.
Now for cases where wholesaling is an option or the contract is to be assigned does the brokerage information need to filled out?
I am assuming you are not an agent or work for a brokerage so the answer is No, you dont have to fill out the broker information.
For wholesaling there is an additional form to fill out that is NOT standard. The 1-4 family contract is what you use to acquire the property and put it on an option period for the specified period of time then you assign the contract to an investor for a fee.
The assigned form you use can be acquired through a legal office that specializes in this type of transaction. Keep in mind you also want to work with an escrow officer who knows how to close these types of deals as well.
Again seek legal representation when you are handling these types of deals because if you don't fill out the 1-4 contract correctly or the additional form, you could be left holding the bag and someone's life could be ruined.
Personally, I use a contract that my RE attorney drafted and that is simple and has all of my addendums that provide protection for me as the buyer.
It is 12 pages long, so it is not that short and you won't find too many "short ones out there because you want to have all the necessary requirements and protections. Technically, you can have a one page contract that can be binding, but would i really want to use a short cut on a legal matter? probably not.
I know people who use TREC's for wholesaling and they do fine, but I understand my contract better and I believe it is easier for the seller to understand as well.
This is a big part of the equation for investing and you want to make sure you have the knowledge and understanding of all the legalities, especially when it comes down to wholesaling side because it is kinda in the gray area.
Definitely different situations for a short, simple custom form. My clients use both TREC 1-4 and a short custom form depending on the seller. Its a very useful tool in your toolkit.